Index: lams_central/src/java/org/lamsfoundation/lams/authoring/service/AuthoringService.java
===================================================================
diff -u -rdded08ea618c437f0f0f6424c6b1bbf54abe5bd7 -r8727b63f3edb448cd2cb115d4ed6138685e54403
--- lams_central/src/java/org/lamsfoundation/lams/authoring/service/AuthoringService.java	(.../AuthoringService.java)	(revision dded08ea618c437f0f0f6424c6b1bbf54abe5bd7)
+++ lams_central/src/java/org/lamsfoundation/lams/authoring/service/AuthoringService.java	(.../AuthoringService.java)	(revision 8727b63f3edb448cd2cb115d4ed6138685e54403)
@@ -707,17 +707,15 @@
 
 	if (activity == null) {
 	    // no read-only activities, insert gate at start of sequence
-	    fromTransition = newTransition;
-
 	    toActivity = design.getFirstActivity();
 
 	    newTransition.setToActivity(toActivity);
 	    newTransition.setToUIID(toActivity.getActivityUIID());
 	    newTransition.setFromActivity(gate);
 	    newTransition.setFromUIID(gate.getActivityUIID());
 
-	    gate.setTransitionFrom(fromTransition);
-	    toActivity.setTransitionTo(fromTransition);
+	    gate.setTransitionFrom(newTransition);
+	    toActivity.setTransitionTo(newTransition);
 
 	    // set gate as first activity in sequence
 	    design.setFirstActivity(gate);